Tenement summary report for EL 27632 for the period 7 June 2010 to 6 June 2011

Abstract

The area is considered prospective for manganese (Mn) and lead-zinc (Zn/Pb) mineralisation. Mn mineralisation and particularly Cretaceous sedimentary deposits of the style seen at Groote Eylandt are the main prospect within the project area. Evidence of Pb/Zn mineralisation, particularly the SEDEX style of the McArthur River type, is observed in the NT geochemical database. Two Pb/Zn mineral occurrences lie within the tenement area (The Swamp and Galena Cliffs). Although the region surrounding the project area is currently being investigated for diamonds there is little information available with respect to previous exploration. There are indications of diamonds spread across most of northern Australia and there has been significant exploration expenditure to date with little success. Thus diamonds are a commodity of low priority at this stage. In order to further assess the tenement area for potential mineralisation a carefully planned field visit (Phase 2) is required. The main aim of Phase 2 is to identify any potential Mn mineralisation.